Risk management can be a somewhat ambiguous term that each person applies differently depending on the circumstances.

In broad terms, risk management is the practice of identifying and analyzing potential risks or threats and taking steps to prevent or reduce their impact. For the average motor carrier, risk management involves protecting employees, equipment, cargo, facilities, the general public, and the company’s brand from harm.

Topics addressed often include security, cargo claims, commercial motor vehicle crashes, workplace injuries and illnesses, liability, and lawsuits. In many instances, one occurrence (e.g., a high-profile crash) can affect other aspects of risk management (e.g., reputation control, recruiting, or insurance).

How do regulations fit into the picture?

In a way, federal and state regulations are risk management tools. Regulations guide motor carriers in setting up procedures to reduce the likelihood of someone being harmed or wronged. Noncompliance with a regulation is often a symptom of a potential risk. At a minimum, carriers should observe laws and regulations. However, carriers often need to integrate industry risk management best practices — above and beyond the basic regulatory requirements — to stay ahead of potential threats.